Loan types and limits for US students , Mono pūtea taurewa, te nui hoki mā ngā tauira nō Amerika

Learn about the federal and private loans you could take out to study at Massey as a US student, including the annual and total limits on federal loans.

As a US citizen or resident, you're likely to get different types of federal loans to make your study at Massey more affordable. The US Department of Education is your lender if you take out a federal loan as part of your financial aid package. These loans are sometimes called Stafford Loans.

If you need to take out loans for your degree, apply for federal loans first because they have better interest rates and other benefits. If you still need money to study, then look into private loans.

See differences between federal and private student loans at Federal Student Aid

Direct loans

The federal direct loan has:

  • two types – subsidised and unsubsidised
  • a limit on how much you can borrow each year
  • a limit on how much you can borrow in total – the aggregate limit.

See direct federal loans at Federal Student Aid

Direct subsidised loans

These loans are:

  • low-interest loans for undergraduates
  • based on your financial need
  • subsidised by the US Government, which pays the loan interest at certain times.

If you have a direct subsidised loan, the US Government pays your loan interest during:

  • your studies, which must be at least half-time or 30 credits a semester
  • the six-month grace period after you finish your studies
  • any deferment you agree with your lender.

You can get direct subsidised loans for up to 150 per cent of the published length of your degree. This 'maximum eligibility period' is a condition of financial aid.

Check how long your degree is expected to take to work out your maximum eligibility period.

Find your degree details

Direct unsubsidised loans

These loans are:

  • for undergraduates, postgraduates and students taking professional qualifications
  • not based on your financial need.

With a direct unsubsidised loan, your loan interest starts when you first get disbursements of your loan money. You can choose to pay the interest each month or add it to your total loan. If you add the interest to the amount you borrow – the principal – you pay back the interest when you start repayment.

Manage loan interest and other money matters

Annual loan limit for undergraduates

Discover the most you could take out in federal loans for each year of an undergraduate degree. How much you can borrow depends on whether you are a dependent or independent student.

Check if you're a dependent or independent student

Dependent students

This table shows the maximum you can borrow in direct federal loans as a dependent student for each year of your degree. The sums are in US dollars.

Maximum sums in US dollars of subsidised and unsubsidised federal loans for Massey dependent students, showing different undergraduate degree years and total annual loan limit.
Year of study Subsidised loan (USD) Unsubsidised loan (USD) Total loan limit for the year (USD)
1st year $3,500 $2,000 $5,500
2nd year $4,500 $2,000 $6,500
3rd year and above $5,500 $2,000 $7,500

Independent students

See the table for the maximum you can borrow in direct federal loans as an independent student for each year of your degree. The sums are in US dollars.

Maximum sums in US dollars of subsidised and unsubsidised federal loans for Massey independent students, showing different undergraduate degree years and total annual loan limit.
Year of study Subsidised loan (USD) Unsubsidised loan (USD) Total loan limit for the year (USD)
1st year $3,500 $6,000 $9,500
2nd year $4,500 $6,000 $10,500
3rd year and above $5,500 $7,000 $12,500

Annual loan limit for postgraduates

If you want to study a postgraduate degree, you:

  • can take out only direct unsubsidised federal loans
  • are classed as an independent student.

This table shows the maximum you can borrow each year in a direct unsubsidised loan. The sums are in US dollars.

Annual limit in US dollars of unsubsidised federal loans available for Massey postgraduate students.
Year of study Unsubsidised loan (USD) Total loan limit for the year (USD)
1st year and above $20,500 $20,500

Total loan limit for all students

This table sets out the maximum or aggregate limit of subsidised federal loans you can take out each year, depending on what kind of student you are. The sums are in US dollars.

Annual limit in US dollars of subsidised federal loans available for Massey students.
Student type Subsidised loan (USD) Total loan limit (USD)
Dependent undergraduate student $23,000 $31,000
Independent undergraduate student $23,000 $57,500

PLUS loans

The federal government offers:

  • Parent PLUS
  • Graduate PLUS.

These loans have no yearly or total limit but you can take out loans only up to the Cost of Attendance. The Cost of Attendance changes each year so you may need to apply for a new PLUS loan each year.

See what Cost of Attendance is

Find out about PLUS loans at Federal Student Aid

Parent PLUS

The Parent PLUS loans are for parents and guardians of dependent undergraduate students.

If you are a parent or guardian applying for a Parent PLUS loan, you need to:

  • go through credit checks
  • give your permission before your child get funds for their living costs
  • start repayments once the funds are given out because there is no deferment or grace period.

Graduate PLUS

Graduate PLUS loans are for students taking postgraduate or professional qualifications.

If you apply for a Graduate PLUS loan, you need to:

  • go through credit checks
  • start repayments as soon as you complete your degree, withdraw from your qualification or start studying less than half-time – under 30 credits each semester.

Private study loans

You can apply to private lenders for loans to cover your education costs. You may want to think about private study loans if:

  • your federal loan doesn't cover your full study and living costs
  • you don't qualify for PLUS loans – for example, because you are an independent undergraduate.

Banks and financial institutions often have the same tests as the federal government when deciding whether and how much to lend to students or parents. But when you apply for a private student loan, you need to have a credit check.

If you don't have a strong credit profile, apply with a loan co-signer who has good credit if you can. This may improve your chances of getting a loan and give you a lower interest rate.

Bear in mind that US financial institutions make loans in US dollars while you need to pay your fees in New Zealand dollars. Take the currency exchange rate into account when you're thinking about how much to borrow.

An example of a private lender is Sallie Mae Student Loans

Contact us for help

Email if you have any questions.

Amy Odom

Senior Administrator
Phone
Department
Student Fees and Compliance – Student Registry
Campus
Manawatū (Palmerston North)

Office location Student Registry Building, Room 1.38

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